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FINANCIAL NEWS
Emaar EC gets USD1.3bn loan from Saudi
26 May 2011
(MENAFN) Emaar Economic City, the Saudi developer, said that in order to speed up a project construction, the company received a USD1.33 billion loan from the Kingdom’s finance ministry, reported Emirates 24/7.
The company added that the loan would be used to finance the development and the construction of the second phase of King Abdullah Economic City, which was established to diversify the Kingdom’s economy from oil based economy.
It also said that the project would see the establishment of a new high tech city on the Red Sea coast with business, industrial, leisure and residential estates in addition to a giant port that has been dogged by delays and lower than expected demand from local and foreign investors.
It is worth noting that the loan has a 10 year tenor where the repayment will start after an initial 3 year grace period. Emaar Economic City made guarantees against the loan by collateralizing a land area of 24 million and 724,000 square meters.
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